Stock Name: YTLPOWR
Company Name: YTL POWER INTERNATIONAL BHD
Research House: AMMB
YTL Power International Bhd
(Nov 16, RM2.51)
Fair value under review, RM2.53: YTL Power International Bhd's (YTL Power) 60%-owned YTL Communications Sdn Bhd signed a memorandum of understanding on Monday with RTM and Media Prima Group's Primeworks Studio to provide internet television content for its 4G WiMAX services.
While the 4G WiMAX service is expected to be launched this Friday, the content for YTL Communications' Internet television services are due to be launched only at end-2011.
Recall that the group plans to invest up to RM2 billion to deploy hybrid television services in Malaysia and the Asia-Pacific region to spur interest in its WiMAX wireless broadband services. This will combine WiMax wireless broadband, under the Yes brand, with the terrestrial digital broadcast television system platform for the new hybrid TV service. The group claims to be able to combine traditional TV, on-demand movies and Internet content for delivery to all screens including a mobile hand-held device, a personal computer or a TV set.
Newspapers cited Tan Sri Francis Yeoh, managing director of YTL Power, as saying that the agreements would effectively make Malaysian content available to the region and 'propel Malaysia towards becoming a regional, digital broadcast hub'.
He also indicated the possibility of undertaking joint bidding for local and international content as well as joint productions for regional broadcast.
YTL Power's shares have surged recently on news that the pre-launch response to its WiMAX service has been above management's internal targets. But note that this is not confirmed registration or fee-paying subscribers as the current internet bookings allow potential customers to choose their own numbers.
We have not assigned any value for the WiMAX investment to our sum-of-parts valuation of RM2.15 per share. Assuming a one time book value, our sum-of-parts will rise to RM2.33 per share.
YTL Power's fair value remains under review pending greater clarity on the pricing structure, technical capabilities and customer response to the WiMAX service. The stock currently trades at a fully diluted CY11F PER of 18 times ' above its three-year diluted PER band of 10 to 16 times.
It is still offering a decent dividend yield of 5%, which we understand is unlikely to be adversely affected by the RM2.5 billion WiMAX capital expenditure programme. ' AmResearch, Nov 16
This article appeared in The Edge Financial Daily, November 18, 2010.
Company Name: YTL POWER INTERNATIONAL BHD
Research House: AMMB
YTL Power International Bhd
(Nov 16, RM2.51)
Fair value under review, RM2.53: YTL Power International Bhd's (YTL Power) 60%-owned YTL Communications Sdn Bhd signed a memorandum of understanding on Monday with RTM and Media Prima Group's Primeworks Studio to provide internet television content for its 4G WiMAX services.
While the 4G WiMAX service is expected to be launched this Friday, the content for YTL Communications' Internet television services are due to be launched only at end-2011.
Recall that the group plans to invest up to RM2 billion to deploy hybrid television services in Malaysia and the Asia-Pacific region to spur interest in its WiMAX wireless broadband services. This will combine WiMax wireless broadband, under the Yes brand, with the terrestrial digital broadcast television system platform for the new hybrid TV service. The group claims to be able to combine traditional TV, on-demand movies and Internet content for delivery to all screens including a mobile hand-held device, a personal computer or a TV set.
Newspapers cited Tan Sri Francis Yeoh, managing director of YTL Power, as saying that the agreements would effectively make Malaysian content available to the region and 'propel Malaysia towards becoming a regional, digital broadcast hub'.
He also indicated the possibility of undertaking joint bidding for local and international content as well as joint productions for regional broadcast.
YTL Power's shares have surged recently on news that the pre-launch response to its WiMAX service has been above management's internal targets. But note that this is not confirmed registration or fee-paying subscribers as the current internet bookings allow potential customers to choose their own numbers.
We have not assigned any value for the WiMAX investment to our sum-of-parts valuation of RM2.15 per share. Assuming a one time book value, our sum-of-parts will rise to RM2.33 per share.
YTL Power's fair value remains under review pending greater clarity on the pricing structure, technical capabilities and customer response to the WiMAX service. The stock currently trades at a fully diluted CY11F PER of 18 times ' above its three-year diluted PER band of 10 to 16 times.
It is still offering a decent dividend yield of 5%, which we understand is unlikely to be adversely affected by the RM2.5 billion WiMAX capital expenditure programme. ' AmResearch, Nov 16
This article appeared in The Edge Financial Daily, November 18, 2010.
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